Question

A family went to a restaurant for dinner. The bill amounting to Rs 3000 was handed which was not inclusive of the 4% Value Added Tax (VAT). The new bill would be:

• A. Rs 3120
• B. Rs 3300
• C. Rs 3395
• D. Rs 3595

Answer 1

The correct option is A

Rs 3120

VAT is calculated on the selling price. Since the billing amount is the selling price, the VAT is added to the billing amount itself.

So, VAT = $\frac{4}{100}\times 3000$ = 120 = Rs.120

Final Bill = Rs.3000 + Rs.120 = Rs.3120